Wells Fargo saw a welcome improvement to its Relative Strength (RS) Rating on Wednesday, rising from 68 to 71.
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This exclusive rating from Investor's Business Daily measures share price action with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
History shows that the market's biggest winners tend to have an RS Rating of over 80 in the early stages of their moves. See if Wells Fargo can continue to show renewed price strength and hit that benchmark.
Wells Fargo broke out earlier, but is now trading approximately 3% below the prior 83.20 entry from a cup with handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to take shape. Also understand that the latest consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Top and bottom line growth moved higher last quarter. Earnings were up 16%, compared to 6% in the prior report. Revenue increased from -3% to 1%. The company is expected to report its latest performance numbers on or around Oct. 14.
The company holds the No. 15 rank among its peers in the Banks-Money Centers industry group. NatWest Group ADR, Barclays ADR and Royal Bank of Canada are among the top 5 highly rated stocks within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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